Amazon Casts Its Vote With the Postal Service

[cheryl]

Amazon Casts Its Vote With the Postal Service - Bloomberg Businessweek

The U.S. Postal Service has announced that it will deliver groceries on a test basis for Amazon. In doing so, the world’s largest mail delivery service is deepening its relationship with the influential e-commerce provider. So much for drone delivery. Amazon’s (AMZN) Jeff Bezos has the USPS, which handles 40 percent of the world’s mail and visits every address in America six days a week, now delivering packages for the Everything Store on Sundays, too.

The news comes just as the USPS is entering a new period of tension with its chief competitors in the parcel space, UPS (UPS) and FedEx (FDX). The USPS is lowering its parcel delivery prices at a time when the private guys are preparing to raise theirs. Clearly, UPS and FedEx fear that the USPS will siphon away their customers. The deepening relationship with Amazon virtually guarantees that. The e-commerce giant was miffed last December when UPS and FedEx misjudged the volume of holiday packages and ended up getting many of them to customers after Christmas.

 

[oldngray]

Amazon may have given up on the drone delivery idea for now but they are still obsessed with the idea of drones. They even have a Drone Store department.
http://www.amazon.com/b/?node=96991...f_rd_t=301&pf_rd_i=drone store&qid=1410448667

 

[upschuck]

I hope they get some bigger vehicles. They are promising a lot.

I would hate to be a postman this peak.

 

[watdaflock?]

Clearly, UPS and FedEx fear that the USPS will siphon away their customers. The deepening relationship with Amazon virtually guarantees that.

I read the above and immediately think of that tv commercial "if its on the internet it must be true"

Why would UPS fear a company (USPS) which loses billions every few months?
Most likely UPS wanted no part in delivering groceries for Amazon.

 

[UpstateNYUPSer(Ret)]

Why would UPS fear a company (USPS) which loses billions every few months?

Could it be because they know that the USPS can never go out of business, no matter how poorly they perform?

 

[watdaflock?]

How much will losing Amazon hurt UPS? Will we close down or have drastic layoffs?
Not that USPS will ever go out of business but in the future they may no longer be considered part of the Government.

Amazon may "buy" USPS.

 

[728ups]

I hope they get some bigger vehicles. They are promising a lot.

I would hate to be a postman this peak.

It KILLS them to get out of the little Mail Car as it is. I forsee more videos with mail carriers tossing packages in the trash

 

[boswharfs]

Talking to mail carriers in Boston about this. Best part is the USPS intends to use casuals to fulfill this service, not the regulars. Regulars want nothing to do with it.
Can you say failure boys and girls?

 

[nayrsiem]

Amazon and the post office are a great fit. Two companies that never make a profit.